SushiSwap creator sold his tokens, the price collapsed by 50%

  • SushiSwap founder Chef Nomi sold his developer tokens.
  • The crypto community was quick to accuse the project of an exit scam.
  • In early September, the coin was listed on Binance.

Cryptocurrency investors who have warned that the DeFi bubble would lead into trouble say that they were absolutely right. The token of the project with the gastronomic name SushiSwap ended up on the cutting board.

Many believe that the anonymous founder of SushiSwap, Chef Nomi, made an exit scam. He sold SUSHI tokens for $ 8 million and thereby collapsed the value of token by 50%.

Source: CoinMarketCap

“The founder made $ 14 million in two weeks, the speculators lost the same. It’s sad.”

Economist and trader Alex Kruger

What happened

Medium user Sillytuna posted a post detailing what happened:

NomiChef has activated the proposal to migrate the SUSHI/ETH pool from Uniswap. Liquidity providers receive 48 hours notice of migration.
He sold 19,430 ETH SUSHI tokens from the SushiSwap developer pool without warning, and then placed them along with the corresponding SUSHI amount from developer funds in the SUSHI / ETH pool.
He ignored all community discussions on the initiative.
He ignored all requests for testing, including testing of the migration procedure.
He did it without forming a multisig to manage contracts and the developer pool.

The SushiSwap team confirmed the token sale by tweeting:

Many in the #SushiSwap community were interested, so that’s the truth. Let’s not deny, we sold the developers tokens, now the fate of SUSHI is completely in the hands of the community.

SushiSwap is a fork of the Uniswap project, which was born at the end of August and was already listed on Binance in early September. FTX also added SUSHI to the list of available assets. Twitter user @Crypto_Ed_NL has lashed out at major exchanges for adding hot coins to their listing. It is unlikely that all of them, unlike serious projects, are properly tested.

Meanwhile, the creator of SushiSwap, Chef Nomi, tried to convince the community that there was no exit scam, because he (or she, and maybe even them) is still here.

Comparison with Litecoin

Moreover, Chef Nomi did not hesitate to compare himself with Charlie Lee, the founder of the eighth largest Litecoin by capitalization. At the peak of the 2017 cryptocurrency boom, Lee sold all of his LTCs. Almost three years have passed, and he still has to make excuses for his decision.

The Twitter community immediately accused Chef Nomi of an exit scam, and some defended Lee, who, by the way, also borrowed the code from Bitcoin for his coin.

Investors who have invested in SUSHI are already demanding their money back. Some have spent thousands of dollars on hot tokens.

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